Boston Scientific Pursues Cost Cutting, Asset Sales
This article was originally published in The Gray Sheet
Executive Summary
Boston Scientific plans to cut costs to address the reality that its core implantable defibrillator and drug-eluting stent businesses have not rebounded as predicted at the beginning of the year
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Boston Scientific restructuring update
Sale of Boston Scientific's cardiac surgery and vascular surgery units will be considered as part of the firm's ongoing effort to divest "non-strategic" assets to help cut costs and reduce debt, the company announces Aug. 16. The move comes on top of earlier plans to explore the sale of the firm's Namic fluid management business, announced July 24 (1"The Gray Sheet" July 30, 2007, p. 17), and the recent sale of its cochlear implant business (2"The Gray Sheet" Aug. 13, 2007, p. 11). Boston Scientific recently decided to retain its endosurgery and pain management businesses, however, following a review (3"The Gray Sheet" Aug. 6, 2007, In Brief). Boston Scientific acquired the cardiac surgery unit, which makes minimally invasive heart surgery devices and generates $189 million in annual sales, as part of its April 2006 acquisition of Guidant. The vascular surgery division, which makes aneurysm repair devices and generates sales of $86 million, was acquired with Meadox Medicals in 1995...
Boston Scientific restructuring update
Sale of Boston Scientific's cardiac surgery and vascular surgery units will be considered as part of the firm's ongoing effort to divest "non-strategic" assets to help cut costs and reduce debt, the company announces Aug. 16. The move comes on top of earlier plans to explore the sale of the firm's Namic fluid management business, announced July 24 (1"The Gray Sheet" July 30, 2007, p. 17), and the recent sale of its cochlear implant business (2"The Gray Sheet" Aug. 13, 2007, p. 11). Boston Scientific recently decided to retain its endosurgery and pain management businesses, however, following a review (3"The Gray Sheet" Aug. 6, 2007, In Brief). Boston Scientific acquired the cardiac surgery unit, which makes minimally invasive heart surgery devices and generates $189 million in annual sales, as part of its April 2006 acquisition of Guidant. The vascular surgery division, which makes aneurysm repair devices and generates sales of $86 million, was acquired with Meadox Medicals in 1995...
Boston Scientific to keep endosurgery biz
Firm decides to forego divestiture of a minority stake in its $1.4 billion-in-sales endosurgery unit via an initial public stock offering, the firm announces Aug. 2. Boston Scientific ultimately decided selling a part of the endosurgery business to accelerate debt repayment, a move under consideration since March, "would have reduced, rather than enhanced, Boston Scientific's shareholder value," CEO Jim Tobin explains. Plans to sell non-strategic assets and reduce headcount to cut expenses are still in the works, however, and the firm suggests investors stay tuned for related announcements in the "coming weeks and months" (1"The Gray Sheet" July 30, 2007, p. 17)...